Perpetuity Study guides, Class notes & Summaries

Price change based on convexity - Answer--duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration - Answer-Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration - Answer-[(v-)-(v+)]/[2V0(change in yield)] Future Value - Answer-PV(1+(I/Y)^N) PV - Answer-FV/(1+r)^n PV of perpetuity - Answer-PMT / discount rate Approximate percentage price change of a bond - Answer-(-)(modified duration)(ΔYTM) Nominal Risk Free - A...

Wall Street Prep Premium Exam correctly answered 2023What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? Extraordinary gains/losses what is false about depreciation and amortization D&A may be classified within interest expense Company X's current assets increased by $40 million from 2007-2008 while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was a decr...

This document contains workings, explanations and solutions to the PVL2602 Assignment 1 (QUALITY ANSWERS) Semester 1 2024. For assistance call or us on 0.6.8..8.1.2..0.9.3.4..... Question 1 In Mark 0.00 out of 1.00 Buhle Baloyi, a 94-year-old retired judge, had been suffering from a prolonged respiratory infection from late 2018. In addition to this, he was diagnosed with rheumatoid arthritis and as a result, he spent most of his days in bed, as he was in severe physical pain. He was looked af...

The cost of preferred stock is computed the same as the __________ A. pre-tax cost of debt. B. rate of return on an annuity. C. after-tax cost of debt. D. rate of return on a perpetuity. E. cost of an irregular growth common stock. - Rate of return on a perpetuity Which one of the following statements concerning net present value (NPV) is most CORRECT? A. An investment should be accepted if, and only if, the NPV is exactly equal to zero. B. An investment should be accepted only if the NP...

§Perpetuity FORMULA - •PV = PMT/I §Sharpe Ratio FORMULA - •(Return - risk-free rate) / standard deviation §CAPM FORMULA - •ri = rRF + (rM - rRF)bi What is the time value of money? - The concept that money you have now is worth more than the identical sum in the future due to its potential earning capacity. §Why is inflation so important for cash flows? - Important for inflation, a dollar is worth more today than in the future due to interest rates increasing. HOW DOES COMPOUNDIN...

82. Indicate which of the following is true about annuities. correct answer: An annuity due is an equal payment paid or received at the beginning of each period. 83. Under MACRS, an asset which originally cost $100,000, incurred installation costs of $10,000, and has an estimated salvage value of $25,000, is being depreciated using a 5 year normal recovery period. The cost of the asset that has yet to be depreciated at the end of year 1 is correct answer: $88,000 = Original cost + installa...

CFA Level 1 Quant question and answers 2024 verified to passnominal risk free rate equals... - correct answer real risk free rate + expected inflation required interest rate on a security - correct answer nominal risk free rate + default risk premium + liquidity premium + maturity risk premium EAR or APY - correct answer (1+periodic rate)^m - 1 always higher than annual percentage rates (not compounded) ordinary annuity - correct answer cash flows that occur at the end of each compou...

1. How much time is given to pass the NV salesperson exam? - correct answer 4 hours - 240 minutes or 4 hours total 2. How many continuing education hours are required? - correct answer 24 hours - State of NV requires salesperson to complete 24-hours of continuing education every 2 years in each 4 year licensing term 3. In order to obtain a NV real estate license you must have a HS diploma? - correct answer True - you must have a HS diploma or equivalent 4. How often must you renew your ...

CFA Level 1 Formulas question and answers rated A+ 2024Price change based on convexity - correct answer -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration - correct answer Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration - correct answer [(v-)-(v+)]/[2V0(change in yield)] Future Value - correct answer PV(1+(I/Y)^N) PV - correct answer FV/(1+r)^n PV of perpetuity - correct answer PMT / discount rate Approx...

Finance Final Exam - Practice Exam Questions The cost of preferred stock is computed the same as the __________ A. pre-tax cost of debt. B. rate of return on an annuity. C. after-tax cost of debt. D. rate of return on a perpetuity. E. cost of an irregular growth common stock. - Rate of return on a perpetuity Which one of the following statements concerning net present value (NPV) is most CORRECT? A. An investment should be accepted if, and only if, the NPV is exactly equal to zero...